RTO Stock Analysis: Rentokil Initial | NYSE
Specialty Business Services | NYSE, USA | Market Cap: 15.168m USD | 12M Return: 31.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 23.5M
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Rentokil Initial plc is a UK-based environmental and facilities services provider operating route-based pest control, hygiene, workwear, and specialist cleaning services across North America, Europe, the UK, Asia, the Middle East, North Africa, Turkey, and the Pacific. Its core pest control offering covers rodents, flying and crawling insects, and wildlife management, while its hygiene segment supplies and maintains washroom products, hand dryers, air purification units, and related fixtures. The company also launders garments for commercial customers and performs specialist deep cleaning, including trauma, flood, fire damage, graffiti removal, and kitchen and washroom sanitation. Founded in 1903 and headquartered in Crawley, the United Kingdom, it is listed on the NYSE under the ticker RTO within the Industrials sectors Environmental & Facilities Services sub-industry. Companies in this sub-industry typically generate revenue through long-term, recurring service contracts and dense local route networks, which support predictable cash flow and customer retention.
- North America pest control fuels organic revenue growth
- Terminix integration delivers cost synergies and margin expansion
- European segments weighed by currency translation and weaker demand
| Net Income: 536.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.39 > 1.0 |
| NWC/Revenue: 6.70% < 20% (prev -8.98%; Δ 15.68% < -1%) |
| CFO/TA 0.07 > 3% & CFO 972.6m > Net Income 536.7m |
| Net Debt (4.37b) to EBITDA (1.59b): 2.75 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (507.5m) vs 12m ago 0.41% < -2% |
| Gross Margin: 13.68% > 18% (prev 13.36%; Δ 0.33% > 0.5%) |
| Asset Turnover: 64.96% > 50% (prev 51.51%; Δ 13.46% > 0%) |
| Interest Coverage Ratio: 4.08 > 6 (EBIT TTM 1.06b / Interest Expense TTM 259.0m) |
| A: 0.04 (Total Current Assets 3.85b - Total Current Liabilities 3.31b) / Total Assets 14.4b |
| B: 0.67 (Retained Earnings 9.69b / Total Assets 14.4b) |
| C: 0.08 (EBIT TTM 1.06b / Avg Total Assets 12.5b) |
| D: 0.61 (Book Value of Equity 5.49b / Total Liabilities 8.93b) |
| Altman-Z'' = 3.65 = AA |
| DSRI: 0.86 (Receivables 1.17b/909.0m, Revenue 8.11b/5.44b) |
| GMI: 0.98 (GM 13.36% / 13.68%) |
| AQI: 0.93 (AQ_t 0.66 / AQ_t-1 0.71) |
| SGI: 1.49 (Revenue 8.11b / 5.44b) |
| TATA: -0.03 (NI 536.7m - CFO 972.6m) / TA 14.4b) |
| Beneish M = -2.85 (Cap -4..+1) = A |
As of July 13, 2026, the stock is trading at USD 29.64 with a total of 613,773 shares traded. Over the past week, the price has changed by -1.17%, over one month by -3.33%, over three months by -11.10% and over the past year by +31.21%.
Current recommended Stop Loss: 28.90 (which is 2.5% or 1.3 ATR below the current price).
Rentokil Initial has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy RTO.
- StrongBuy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 36 | 21.4% |
P/E Trailing = 52.8772
P/E Forward = 18.5185
P/S = 2.1957
P/B = 2.758
P/EG = 0.9115
Revenue TTM = 8.11b USD
EBIT TTM = 1.06b USD
EBITDA TTM = 1.59b USD
Long Term Debt = 4.16b USD (from longTermDebt, last quarter)
Short Term Debt = 1.58b USD (from shortTermDebt, last quarter)
Debt = 6.68b USD (from shortLongTermDebtTotal, last quarter) + Leases 563.0m
Net Debt = 4.37b USD (calculated: Debt 6.68b - CCE 2.32b)
Enterprise Value = 19.5b USD (15.2b + Debt 6.68b - CCE 2.32b)
Interest Coverage Ratio = 4.08 (Ebit TTM 1.06b / Interest Expense TTM 259.0m)
EV/FCF = 21.86x (Enterprise Value 19.5b / FCF TTM 893.4m)
FCF Yield = 4.57% (FCF TTM 893.4m / Enterprise Value 19.5b)
FCF Margin = 11.02% (FCF TTM 893.4m / Revenue TTM 8.11b)
Net Margin = 6.62% (Net Income TTM 536.7m / Revenue TTM 8.11b)
Gross Margin = 13.68% ((Revenue TTM 8.11b - Cost of Revenue TTM 7.00b) / Revenue TTM)
Gross Margin QoQ = 13.88% (prev 13.53%)
Tobins Q-Ratio = 1.36 (Enterprise Value 19.5b / Total Assets 14.4b)
Interest Expense / Debt = 3.88% (Interest Expense 259.0m / Debt 6.68b)
Taxrate = 25.37% (118.6m / 467.5m)
NOPAT = 788.3m (EBIT 1.06b * (1 - 25.37%))
Current Ratio = 1.16 (Total Current Assets 3.85b / Total Current Liabilities 3.31b)
Debt / Equity = 1.22 (Debt 6.68b / totalStockholderEquity, last quarter 5.49b)
Debt / EBITDA = 2.75 (Net Debt 4.37b / EBITDA 1.59b)
Debt / FCF = 4.89 (Net Debt 4.37b / FCF TTM 893.4m)
Total Stockholder Equity = 4.79b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.30% (Net Income 536.7m / Total Assets 14.4b)
RoE = 11.21% (Net Income TTM 536.7m / Total Stockholder Equity 4.79b)
RoCE = 11.81% (EBIT 1.06b / Capital Employed (Equity 4.79b + L.T.Debt 4.16b))
RoIC = 6.42% (NOPAT 788.3m / Invested Capital 12.3b)
WACC = 6.62% (E(15.2b)/V(21.9b) * Re(8.26%) + D(6.68b)/V(21.9b) * Rd(3.88%) * (1-Tc(0.25)))
Discount Rate = 8.26% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 76.41 | Cagr: 14.56%
[DCF] Terminal Value 77.97% ; FCFF base≈738.8m ; Y1≈847.0m ; Y5≈1.25b
[DCF] Fair Price = 28.60 (EV 18.8b - Net Debt 4.37b = Equity 14.4b / Shares 503.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -78.39 | EPS CAGR: -68.51% | SUE: 0.0 | # QB: 0
Revenue Correlation: 92.06 | Revenue CAGR: 22.41% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=1.46 | Chg30d=-0.34% | Revisions=-25% | GrowthEPS=+12.9% | GrowthRev=+4.5%
EPS next Year (2027-12-31): EPS=1.67 | Chg30d=-0.60% | Revisions=-25% | GrowthEPS=+14.6% | GrowthRev=+4.3%
[Analyst] Revisions Ratio: -40% (up=0, down=2)